Sunday, July 03, 2011

QTCQX stocks

China Education Resources CHNUF
This is the same company I was following on this blog for a long time (CEDA).Q1 2011 Results
Weak balance sheet.
Earned about a penny a share.
Cash flow statement was horrible.

Ok, let's go back to the annual report.
Auditors are Chang Lee. Who? Running through the google list, it's not Chang Lee's Tae Kwon Do of Mesquite, TX. Not the Chang W. Lee of the NYT. Not the Chang Lee from Doctor Who. Not Ron Chang Lee. Oh, here they are, all three of them.

Doubts about the company as a going concern. Well, that about wraps it up.... but let me just take a peek:

Balance sheet is horrifying. Income statement... how do you spell hemorrhage?

Equity statement shows lots of share printing for acquisitions etc.

Operations actually generated cash flow. Why did they make a gigantic advance to related parties???

"NEXT!!!!"

I think I'll skip China Health Labs & Diagnostics Ltd.

Competitive Technologies
They help commercialize technologies coming from universities and other sources. That's certainly a better business than actually trying to guess which ones will succeed. Sort of like selling restaurant equipment instead of starting a restaurant.

10-Q March 2011. "Unlocking the potential of innovation" (I'd rather it be "Picking the pockets of mousetrap builders")

Holy cow, where are your assets? only 10% of them are remaining... and total current liabilities are bigger than total assets. Tiny sliver of equity.